SeaStar Medical(US:ICU) Prnewswireยท2024-07-31 15:35Core Viewpoint - SeaStar Medical Holding Corporation is facing a federal securities class action lawsuit due to allegations of making false or misleading statements regarding its compliance controls and financial reporting, leading to a significant restatement of its financial statements [2][3][4]. Group 1: Legal Investigation and Class Action - Faruqi & Faruqi, LLP is investigating potential claims against SeaStar and has set a deadline of September 6, 2024, for investors to seek the role of lead plaintiff in the class action [2]. - The lawsuit alleges that SeaStar and its executives violated federal securities laws by failing to disclose deficiencies in compliance controls related to the HDE Application and overstating the regulatory prospects of the SCD [3]. Group 2: Financial Restatement - On March 27, 2024, SeaStar announced it would restate its financial statements for the fiscal year ended December 31, 2022, and interim periods ended March 31, 2023, June 30, 2023, and September 30, 2023, due to issues with the accounting treatment of certain financial instruments [4]. - The CEO stated that the restatement is not expected to materially impact the company's operations or cash position, but is related to non-cash accounting items [4]. Group 3: Market Reaction - Following the announcement of the restatement, SeaStar's stock price fell by $0.04 per share, or 5.41%, closing at $0.70 per share on March 27, 2024 [8].